Present Value Calculator
Calculate the present value of a future amount or a payment stream.
Discount future cash flows to today’s value.
Result
How to use this calculator
Discount future cash flows to today’s value. Enter amounts in the units shown, select the applicable options, and click Calculate. Use Reset to restore the starting values.
Calculation formula
PV = FV/(1+r)^N + PMT × (1 − (1+r)^−N)/r.
Assumptions and accuracy
Review timing, rates, fees and result notes when comparing scenarios. Future returns and rates are assumptions rather than guaranteed outcomes. Monetary display follows the currency’s precision; intermediate calculations retain additional digits.
Choose what to calculate
Present value of annuity calculator
Discount a future lump sum or periodic payments to today's value using the entered rate and timing. Match the payment interval to the discount-rate period.
Open this calculationUnderstanding this calculation
Discount future money to an equivalent amount today. The lump-sum mode handles a future balance, while the annuity mode can also include recurring payments.
Worked examples
Present value of 1,100 received next period
Illustrative inputs are specified in the steps below; the example link loads the complete settings. Unmentioned settings use the linked defaults.
- Discount one period at 10%: 1,100 / 1.10 = 1,000.
Present value: 1,000 USD.
Try these inputsCommon questions
Why is present value lower than future value?
With a positive discount rate, money received later is divided by a growth factor to express its value today.
Can I value an annuity plus a final lump sum?
Yes. Use the annuity mode and enter the recurring payment separately from the terminal future value.
Scope and assumptions
The discount rate must match the period length. The calculation does not determine an appropriate investment discount rate for you.
Sources
- Calculation methodology, rule versions and testing limitations
- Reference calculator for feature comparison (not a model-parity certification)
Calculation notes checked . Examples are mathematical checks under the stated assumptions.
Calculation methods and formulas
Future Lump Sum
Discount future cash flows to today’s value.
PV = FV/(1+r)^N + PMT × (1 − (1+r)^−N)/r.
Periodic Payments
Discount future cash flows to today’s value.
PV = FV/(1+r)^N + PMT × (1 − (1+r)^−N)/r.
See our calculation methodology and review status for data versions, rounding and validation limitations.